Banking as a Service (BaaS) is a concept under Open Banking. Open banking is limited to the sharing of customer data. On the other hand, BaaS allows non-banks to embed financial services in their product offering. It focuses on giving the customer access to core banking services. 

By leveraging BaaS platforms, fintech companies, e-commerce businesses, and other enterprises can offer customers financial products such as bank accounts, payment processing, and lending services without holding a banking license themselves. This model democratises access to banking infrastructure, allowing a broader range of companies to deliver financial solutions seamlessly within their customer experiences. BaaS not only accelerates the development of new financial products but also enhances customer convenience by embedding banking functions directly into everyday services. For traditional banks, partnering with BaaS providers opens new revenue streams and broadens their reach. As the financial landscape evolves, BaaS stands out as a pivotal component in fostering innovation and expanding access to financial services across various sectors.